^ o H\  y § 71  • Q> 


3 &tA/  j- 


• 4 
• •• 


SPECIE  PAYM.EN.TS; 


Friend  Jonathan:  I perceive,  from  the  newspapers  of  the 
day,  that  your  people  are  calling,  some  for  specie  payment,  some 
for  increase  of  currency,  and  others  again  for  financial  changes, 
vaguely  conceived  and  still  more  vaguely  defined. 

This  being  the  case,  friend  Jonathan,  it  may  not  be  amiss  for 
us  to  consider  the  different  propositions  of  these  your  clamorous 
people,  as  well  as  the  reasons  of  their  clamor. 

You  will  observe,  friend  Jonathan,  that  those  demanding  a re- 
turn to  specie  valuations  are  generally  the  Eastern  portion  of  your 
people,  who  are,  and  always  have  been,  the  creditor  class ; while 
the  demand  for  more  currency  comes,  very  generally,  indeed, 
from  the  whole  balance  of  your  nation.  The  great  Northwest, 
including  the  entire  South — which,  you  know,  has  yet  to  recover 
its  lost  ground  in  the  way  of  financial  prosperity — are  to-day  well 
nigh  drained  of  currency.  The  vast  increase,  both  in  population 
and  improvements,  of  the  great  West  has  been,  and  continues  to 
be,  so  rapid,  that  had  it  started  even  with  the  East  in  the  distri- 
bution of  currency,  it  would  not  now  have  anything  like  a suf- 
ficiency to  represent  its  increased  business  capacity. 

Therefore,  friend  Jonathan,  relief  of  some  kind  is  looked  for  by 
your  people,  and  think  you  not  it  should  be  granted  them  ? If 
so,  in  what  shape  shall  it  come  ? By  a response  to  the  cry  of  the 
East  and  older  portion — the  mere  corner  of  your  country  ? To 
where  business  pays  5 to  7 per  cent,  interest  for  money,  as  in  the 
East,  or  where  it  pays  10  to  20  per  cent,  as,  at  the  present  time, 
in  the  West  and  South?  Which  shall  ic  be?  Which  requires  it 
most,  think  you?  Why  is  it  that  business  in  one  section  pays 
less  than  in  the  other?  Is  it  not  evident  that  where  money  is 
the  highest,  it  is  the  scarcest,  and  the  demand  for  it  the  greatest  ? 
Surely,  then,  the  section  where  scarcity  prevails  is  the  one  re- 


2 


Specie  Payments. 


quiring  relief,  and,  you  jjerceive,  it  must  alone  be  obtained  by 
increasing  the  commodity  you  wish  to  cheapen.  A response  to 
the  cry  of  the  East,  to-wit,  specie  payment,  will  only  increase 
the  bnrfbet  Af  Wesjt : causing  their  business  to  pay  even 
higher  tatfeS  «*tft  (?*«»©•  of  money ; chilling  and  checking  their 
general  prosperity ; *.tnJti5iJ^ildfering  them  unable  to  pay  you  their 
annual  tfik,  solfmportuiitiy ©A  should  have/ 

Whereas  ^ proper «r$ljef  to  the  West  and  South  by  an  increase 
of  capit'al^  jji •the*. ifppd;  effi’a  sound  currency,  will  be  like  oiling  the 
machinery  of  your  country.  Then  activity  will  be  resumed  ; en- 
ergies revived  ; farm  after  farm  opened  up  and  improved  ; shops, 
mines  and  manufactories  brought  into  existence;  railroads  and 
their  business  increased;  in  fact,  the  now  entire  dormant  wealth 
of  your  great  and  growing  West  will  be  earlier  and  more  fully 
developed;  which,  you  know,  friend  Jonathan,  should  be  the 
case,  in  order  the  more  fully  to  assist  you  in  liquidating  the  pon- 
derous debt  you  have  upon  your  shoulders.  Recollect,  .friend 
Jonathan,  that  every  farm,  shop,  mine,  railroad,  road  or  other 
improvement,  calculated  to  increase  the  production  of  your 
country,  is  aiding  you  to  support  your  heavy  debt;  is  marching, 
in  the  true  path  toward  specie  payment,  and  the  ultimate  liquida- 
tion of  your  debt.  It  may  not  be  the  straight  cut;  but  it  is  the 
safe  one,  and  will  certainly  accomplish  the  object,  that  is  : Save 
your  people  from  distress,  and  enable  you  to  collect  your  revenue 
promptly  by  giving  your  people  the  means  to  pay  it. 

“ But,”  you  say,  “ this  will  take  me  further  from  specie  pay- 
ment.” True,  Friend  Jonathan,  that  is  true ; for  the  present  it 
may  really  do  so.  But  have  you  not  heard  the  adage,  “ The 
furthest  way  around  is  the  nearest  way  home,”  and  does  it 
not  apply  in  this  instance,  when  we  consider  the  dangers  to  be 
avoided  and  difficulties  to  be  overcome  ? Have  you  never 
observed  a heedless  youth  take  a short  cut  across  a street  regard- 
less of  mud  and  mire,  coming  out  with  clothes  ruined,  when  by 
winding  around  and  varying  his  course  he  might  have  escaped 
injury  ? Then  would  it  not  be  best  for  you  to  pick  your  steps 
and  vary  your  path,  in  order  to  cross  the  chasm  that  lies 
between  you  and  specie  payment ; to  avoid  the  quicksand,  and, 
perhaps,  the  destruction  of  your  people's  prosperity?  Not,  in 
varying  your  course,  to  suit  (as  they  may  think)  a mere  set  of 
capitalists  and  financiers. 


Specie  Payments. 


3 


If  then,  Friend  Jonathan,  you  are  true  to  your  peo.ple;  your 
whole  country  ; its  real,  permanent  prosperity  — not  a fictitious 
prosperity,  but  such  as  creates  wealth,  (the  only  one  worthy 
your  attention)  — you  will  keep  your  people  employed,  or  so 
arrange  that  they  employ  one  another,  actively  in  all  branches  of 
industry.  This  is  not  only  your  duty,  but  it  is  the  grand  secret 
of  all  national  prosperity.  “ Oh  ! ” you  say,  “ this  is  undoubt- 
edly my  duty,  but  how  is  to  be  accomplished  ? ” By  affording 
them  sufficient  currency  to  work  with  and  represent  their  labor. 
This  will  eventually  take  you  across  the  chasm  with  entire  safety 
to  your  people’s  business  and  your  own ; though  it  may  cause  the 
path  to  wind  and  lengthen. 

This,  then,  is  the  question  : shall  your  people’s  business  be  cut 
down  to  the  standard  ot'  the  specie  now  on  hand,  or  shall  the 
currency  be  increased  to  the  real  business  capacity  of  your 
country  and  its  people?  To  you,  Friend  Jonathan,  we  look  for 
an  answer.  No  doubt  our  European  neighbors,  and  their  friends 
in  this  country  — and  by  these  1 mean  those  who  are  now  crying 
specie  payment  so  loudly,  and  who  are  using  such  weighty  argu- 
ments to  obtain  it  — would  gladly  see  you  cut  down,  or  even 
entirely  stop,  your  people’s  business  by  reducing  its  capacity  to 
your  present  specie  basis,  which  is  not  now  equal  to  what  it  was 
30  years  ago,  when  you  had  but  twenty  millions  inhabitants,  and 
now  you  have  forty  millions.  This  course  would  so  effectually 
cripple  and  harass  your  people’s  young  business,  as  to  close  up 
the  various  avenues  of  industrial  pursuits ; giving  full  swoop  to 
Europe  in  the  markets  of  your  country,  and  that , Friend 
Jonathan,  is  the  very  thing  they,  and  their  friends  here,  are  after, 
and  would  be  glad  to  see. 

Even  to  restrain  the  business  growth  of  your  country  to  the 
present  issue  of  currency  is  working  distress,  and  must  work 
immensely  greater  distress  in  the  future.  Your  country,  Friend 
Jonathan,  must  not  be  measured  by  the  matured  countries  of 
Europe  in  the  ratio  of  its  currency,  or  representative  capital. 
The  annual  production  of  the  older  countries  leave  them,  after 
deducting  the  general  support,  a large  surplus  which  enters  into, 
and  swells  their  active  business  capital ; consequently  their  ratio  of 
representative  capital  increases  largely  over  business  and  popula- 
tion. This,  you  must  certainly  know,  is  not  the  case  in  your 


4 


Specie  Payments. 


country.  Here  the  reverse  is  the  case  ; millions  over  the  pro- 
duction and  consumption  go  into  the  opening  up  of  your  coun- 
try, and  other  improvements,  for  which  there  is  no  representa- 
tive capital.  For  example:  say  the  production  of  your  whole 
country  was  four  thousand  millions  per  annum,  and  the  com- 
mon consumption  three  thousand  millions  ; this  would  leave,  as 
you  would  suppose,  one  thousand  millions  that  would  naturally 
enter  the  active  business  capital  of  your  country.  This  would 
be  the  case  was  your  country  once  properly  developed,  and  its 
permanent  improvements  all  made,  as  in  the  European  states  ; 
but  instead  thereof,  your  people  have  expended  two  thousand 
millions  during  the  year  in  improvements ; thus  expending  one 
thousand  millions  over  and  above  their  net  income  in  opening  up 
farms,  erecting  houses,  barns  and  fences,  making  roads,  railroads 
and  machinery — increasing  the  wealth  of  your  country  every 
year  ahead  of  their  income,  in  permanently  adding  to  its  value, 
but  adding  nothing  to  its  business  capital.  You  will  find  this  to 
be  the  case,  friend  Jonathan,  if  you  will  examine  the  assess- 
ments of  your  states  and  counties  from  year  to  year ; they  will 
show  you  the  figures  on  this  point. 

Again,  friend  Jonathan,  take  the -subject  on  the  basis  of  popu- 
lation. Beside  the  natural  increase  of  your  people,  they  are 
largely  augmented  yearly  by  immigration  from  every  nation  of 
the  globe.  This  immigration  being  generally  comparatively 
poor,  however  much  it  may  add  to  the  productive  labor,  adds 
nothing  to  the  capital  of  your  country  — the  medium  by  which 
their  labor,  time,  and  property  is  to  be  computed  and  adjusted. 
In  England,  friend  Jonathan,  they  have  23  to  26  dollars  ot  rep- 
resentative capital  to  each  individual  of  their  population.  In 
France  it  is  even  greater,  being  27  to  30  dollars.  When  we 
consider  that  these  countries  are  small  in  extent,  advanced  in 
improvements,  and,  if  anything,  decreasing  in  population,  may 
we  not  safely  conclude  that  an  equal  proportion  of  capital  would 
not  be  too  much  for  a country  like  yours,  where  everything  is 
yet  to  be  made  and  done,  and  whose  growth  is  in  its  infancy  ? 
But  what  is  the  fact?  You  have  barely  15  dollars  to  the  indi- 
vidual, when  you  should  have  more  than  either  of  the  cases 
cited ; especially  considering  the  extended  boundaries,  its 
rapidly  increasing  population,  unopened  condition,  and  the 


Specie  Payments . 


5 


amount  of  work  yet  to  be  accomplished.  Therefore,  60  dollars 
per  capita  is  not  more  than  your  peo^l^should  haye. 

Besides,  a scarcity  of  currency  invariably  produces  a long 
credit  system  — the  greatest 3 drawback  to  -active  business  that 
can  be  imagined.  It  is  hot"  possible  ’th&t  cbutracts  can  be 
promptly  met  with  a short  currency:  'Onh  i^'compe^led  to  wait  on 
the  other,  or  pay  ruinous  rates  fof^bhey*-^  dftetf  failing  entirely 
to  obtain  it.  Every  commodity  is  therefore  increased  in  price  ; 
not  only  is  interest  charged  on  purchases  on  time,  but  addi- 
tional charges  are  made  for  risk  in  collection.  Thus  it  is,  that  a 
short  currency  bears  particularly  heavy  on  the  poorer  classes  — 
which  constitutes  the  largest  part  of  your  people  — enhancing 
prices,  and  rendering  the  means  to  pay  unobtainable — surely  no 
increase,  however  large,  of  currency  could  equal  the  evils  aris- 
ing from  a short  currency,  in  these  particulars. 

If,  therefore,  friend  Jonathan,  you  think  with  me,  that  there  is 
a necessity  for  a largely  increased  issue  of  currency,  the  question 
recurs,  to  what  extent,  how,  and  in  what  shape  shall  the  issue  be 
made  ? 

To  fund  a debt  as  large  as  yours,  friend  Jonathan — which  yon 
would  be  compelled  to  do,  should  you  attempt  specie  payment — 
would  but  add  to  the  taxes  of  your  already  over-burthened  people, 
and  largely  detract  the  currency  they  may  have  from  the  legiti- 
mate channels  of  business;  that  is,  tie  up  a large  amount  in  the 
hands  of  tax  gatherers  for  no  inconsiderable  portion  of  the  year  ; 
nor  would  this  plan  relieve  you  to  and  considerable  extent  from 
the  harrassing  business  of  providing  for  interest.  Suppose, 
therefore,  friend  Jonathan,  you  fund  one-half  your  debt  (as  is 
now  proposed)  at  as  low  a rate  as  possible  ; that  you  gradually 
take  up  your  bonds  now  held  by  the  national  banks  and  your 
people,  paying  for  them  in  currency  as  you  now  do  to  the  extent, 
ultimately,  of  the  remainder  of  your  debt.  This  amount  of  cur 
rency  will  be  none  too  large ; for  it  will  include  the  currency  now 
in  use;  your  3 per  cent,  certificates  ; your  5 and  6 per  cent,  in- 
terest bearing  notes  yet  out,  and  your  5-20  bonds  now  used  by 
your  people  in  their  business  for  want  of  currency — and  this  is 
very  largely  done,  especially  in  the  South  and  West.  This,  with 
the  natural  increase  of  business  during  the  time  occupied  in  grad- 
ually consummating  the  plan,  will  absorb  an  issue  at  least  equal 


6 


Specie  Payments. 


to  one-half  y,ou,r  present  debt ; every  dollar  of  which  will  be  re- 
quired, and  pt^fi^abfy  ttsfeddn  tfie  business  of  your  people.  Of 
course,  I intend  that  this"  i&Siie  should  be  wholly  of  government 
paper.  * '•  < , : * V - ' " i ,<!  ! 

And  here,  Triend  Johatbanp,*!1  ^r()uld  mention  that  much  has 
been  said  of  iKtef  d.bgh.tflsub^tituting  “greenbacks”  for  the  use  of 
the  banks  in*  pld6elof  Mrataatftd-n&l  bank  issue  now  in  use.  Judging 
from  the  tone  of  public  opinion  on  this  point,  I conclude  that  the 
plan  meets  with  some  favor ; although  there  are  those  who  have 
of  late  doubted  your  authority  to  issue  the  nation’s  favorite  cur- 
rency. I do  not  propose  to  argue  this  subject  at  present,  but 
shall  content  myself  by  taking  for  granted  that  which  is  written, 
viz.,  that  you,  friend  Jonathan,  “ have  the  power  to  coin  money,” 
and  regulate  the  value  thereof,”  and  “that  no  state  shall  coin 
money,  emit  bills  of  credit,  or  make  anything  but  gold  and  silver 
a tender  in  payment  of  debts;”  leaving  the  very  just  and  obvious 
conclusion  that  you  have  the  power  to  do  all  these  things. 

If,  then,  friend  Jonathan,  an  increase  of  currency  be  made,  it 
seems  politic  that  it  should  be  of  the  least  objectionable  form 
possible.  This  I take  to  be  the  present  government  issue,  viz.  : 
Greenbacks.  I am  aware  the  national  banks  would  certainly 
reject  the  plan,  as  they  would  lose  their  annual  income  from  the 
bonds  deposited  with  you  as  security  for  their  circulation ; but 
the  loss  of  this  income  to  them  is  not  the  least  of  the  gain  to  your 
people,  which  the  plan  would  insure.  The  simple  truth  is,  friend 
Jonathan,  that  you  now  pay  these  banks  a large  income  for  the 
very  questionable  privilege  of  being  god-father  to  their  circula- 
tion. Why  not  father  it  at  once,  and  receive,  or  let  your  people 
receive,  the  advantage  of  this  income?  It  would  certainly  be 
more  fair  to  your  whole  people,  and  they  as  the  ultimate  payers 
are  surely  the  most  entitled  to  the  advantage.  The  banks,  friend 
Jonathan,  would  have  no  reason  to  complain.  They  certainly 
should  be  content  with  a single  profit  on  their  capital,  and  one, 
too,  fully  as  large  as  under  the  old  state  system.  Twenty-five 
per  cent,  is  too  large.  No  merchant  or  other  business  man  ap- 
proaches it;  while  few,  if  any,  of  the  national  banks  fail  to  secure 
it.  Let  them,  then,  receive  your  greenbacks  for  their  bonds,  and 
on  this  capital  do  a legitimate  banking  business.  In  other  words, 
friend  Jonathan,  make  your  banking  system  free  to  your  people, 


Specie  Payments. 


1 


and  let  them  be  the  loaners  and  not  the  issuers.  Then  capital 
will,  like  water,  seek  its  own  level,  and  find  its  way  to  every 
point  of  demand. 

Another  very  important  matter  is  the  loss  by  fire  and  marine 
accidents  and  ordinary  wear  and  tear  which  annually  occurs  in 
a large  and  widely  spread  circulation.  This,  friend  Jonathan,  is 
immensely  greater  than  most  persons  have  an  idea  of,  and  only 
those  acquainted  with  the  subject  can  imagine  the  great  gain 
accruing  to  banks  from  this  source.  Such  persons  will  readily 
agree  with  me  that  3 per  cent,  is  a low  estimate  of  the  annual 
loss.  This,  then,  is  another  gain  to  the  banks  to  be  transferred 
to  your  treasury;  and  in  so  large  a currency,  extending  over  so 
vast  a territory,  it  is  safe  to  conclude  that  the  gain  will  be 
greater  even  than  my  estimate.  On  this  point  it  may  not  be  out 
of  place  for  me  to  give  the  actual  experience  of  a small  bank, 
operating  under  the  State  system,  in  the  interior  of  Ohio,  cover- 
ing a period  of  eleven  years.  The  bank,  at  the  end  of  this 
period,  found  their  gain  to  be  twenty-two  per  cent,  in  the  actual 
loss  of  its  circulating  issue  ; this,  too,  without  any  exclusive  or 
particular  cause,  other  than  the  ordinary  wear  and  tear. 

Taking  your  debt  at  the  present  time,  in  round  numbers,  to  be 
twenty-four  hundred  millions,  the  interest  of  the  one-half  at  Tj- 
per  cent,  will  be  fifty-four  millions  annually.  The  loss  on 
twelve  hundred  millions  — the  amount  of  currency  in  circulation 
among  your  people  — at  3 per  cent,  will  be  thirty-six  millions  to 
be  placed  to  your  credit  as  so  much  gain ; this  makes  the  larger 
portion  of  the  fifty-four  millions  interest  on  the  other  or  funded 
half  of  your  debt,  and  to  this  extent  relieves  your  people  of 
taxation.  You  see,  friend  Jonathan,  by  this  you  not  only  save 
fifty-four  millions  interest  on  the  half  of  your  debt  not  funded, 
but  3arn  thirty-six  millions  by  its  use;  making  a difference  of 
ninety  millions  in  your  annual  statement  from  the  present  state  of 
affairs.  It  is  no  objection  to  this  plan  to  say,  that  the  loss  can 
not  be  ascertained  without  calling  in  all  currency;  it  can  be 
calculated  with  sufficient  accuracy,  and  other  paper  issued  annu- 
ally to  keep  up  the  maximum. 

There  is  yet  another  advantage,  friend  Jonathan,  which  the 
greenback  has  over  the  national  bank  system ; and  that  is  in 
attempting  specie  payment.  The  plan  proposed  that  national 


8 


Specie  Payments. 


bank  paper  shall  be  redeemed,  not  only  at  its  own  coun- 
ter, but  at  some  particular  place  foreign  to  the  bank,  is 
in  itself  a measure  that  will  cause  constant  commotion 
and  fluctuation  in  the  currency.  Not  only  would  a large  amount 
be  taken  from  circulation  in  transit  to  and  from  the  point  of 
issue  and  redemption,  but  it  would  be  an  actual  tax  on  business 
entirely  uncalled  for.  It  is  not  probable  that  the  banks  would 
be  in  equal  standing  at  the  place  of  redemption,  and  conse- 
quently a classification  of  banks  would  be  the  result ; which 
classification  would  necessarily  extend  to  the  issue  in  circulation. 
All  this,  friend  Jonathan,  would  go  to  lessen  the  confidence  of 
your  people  in  the  banks,  and  millions  would  have  to  be 
redeemed  from  this  cause  alone,  which  would  never  be  required 
if  the  issue  were  your  own. 

Again,  friend  Jonathan,  when  redemption  comes  on,  you  will 
find  almost  the  entire  national  bank  issue  disappear  from  circu- 
lation. They  cannot  possibly  extend  the  accommodations  they 
now  do.  Self-protection  will  compel  them  to  withdraw  their 
issue  to  the  standard  of  the  specie  they  may  be  able  to  procure. 
In  the  struggle  for  specie  each  will  force  the  other  to  redeem  in 
order  to  secure  its  own  circulation.  Then  will  be  presented  the 
lamentable  spectacle  of  the  larger  ones  swallowing  the  smaller 
ones,  while  the  currency  of  the  country  remains  securely  locked 
up  in  the  vaults  of  the  banks,  and  the  people  unable  to  move  hand 
or  foot  without  it.  What  difference  would  it  then  make  whether 
the  country  had  five  hundred  millions  or  two  thousand  millions 
of  currency  ? How  much  do  you  suppose  could  be  procured  at 
reasonable  rates  for  business  purposes?  Just  so  much  as  the 
“rings”  and  combinations,  sure  to  be  inaugurated,  would  allow 
the  banks  to  retain  specie  to  represent,  and  not  a dollar  more. 

On  the  other  hand,  friend  Jonathan,  were  you  the  author  of  the 
currency,  such  is,  and  would  be,  the  confidence  of  your  people, 
that  specie  payments  could  be  established  with  vastly  less  specie 
than  by  any  other  possible  plan.  The  excitement  which  would 
naturally  follow  in  the  commencement  once  over,  I am  confident 
that  one  dollar  in  ten  would  meet  all  demands  on  you  for  specie; 
and,  except  for  change,  it  would  only  be  required  for  customs 
and  to  pay  balances  in  foreign  countries;  the  currency  itself 
being  legal  tender  for  all  other  purposes  ; the  facilities  for  your 


Specie  Payments. 


9 


people  obtaining  specie  could  be  regulated  at  your  treasury,  and 
its  various  branches,  established  as  the  requirements  of  business 
may  demand.  I am,  of  course,  presuming  that  effectual  meas- 
ures will  be  taken  to  prevent  all  rings  and  combinations  from 
interfering  with  the  legitimate  demand ; and  who,  friend  Jona- 
than, can  so  perfectly  regulate  this  matter  as  you  yourself?  It 
is  well  known  that  in  other  countries  effectual  checks  exist  against 
any  efforts  to  embarrass  governments  in  their  specie  movements ; 
confidential  reports  are  daily  made  on  this  subject  to  the  proper 
authorities,  so  that  no  specie  can  arrive  or  depart  without  gov- 
ernment being  advised  thereof.  Thus  it  is  that  they  are  con- 
stantly advised  of  the  amount  of  specie  in  circulation  among 
their  people,  and  are  ready  at  any  moment  to  interpose  obstacles 
in  the  way  of  all  combinations  that  may  be  formed.  There  cer- 
tainly is  no  valid  reason  why  you,  friend  Jonathan,  should  not 
exercise  the  same  care  over  this  very  important  part  of  your 
people’s  interest.  It  is  no  objection  to  assert  that  officers  them- 
selves would  use  their  official  position  in  a shameful  prostitution 
of  their  trusts ; the  same  objection  applies  to  any  other  depart- 
ment of  government,  protected  by  the  usual  oaths  and  other 
moral  restraints.  If  this  course  would  have  no  other  effect,  it 
might  at  least  save  us  the  disgrace  attending  certain  “ investi- 
gations.” 

Before  leaving  the  subject  of  redemption,  I am  constrained  to 
state,  friend  Jonathan,  that  in  my  opinion  you  have  been  work- 
ing at  the  wrong  end  of  the  matter.  Almost  every  proposition  I 
have  seen  contemplates  reducing  the  currency  to  meet  the  specie, 
instead  of  raising  the  specie  to  meet  the  currency.  With  a view 
to  the  future  I take  it  that  this  is  not  good  policy.  I have  seen 
it  estimated  that  in  thirty  years  your  population  is  likely  to  be 
one  hundred  and  ten  millions.  You  certainly  must  see  that  by 
that  time  you  must  be  prepared  to  carry  an  immensely  increased 
currency  ; yet  no  means  have  been  devised  to  secure  the  specie 
upon  which  to  base  this  issue.  The  amount  now  in  your  country 
is,  comparatively,  trifling ; yet  you  have  the  largest  gold  and  sil- 
ver producing  country  in  the  world,  and  sufficient  has  been  pro- 
duced in  the  last  twenty  years  to  pay  almost  your  entire  debt  in 
coin.  What  has  become  of  it  ? Why,  sir,  the  freight  list  of  every 
departing  vessel  will  tell  you — gone  to  support  the  labor  and  en- 
hance the  capital  of  other  countries. 


10 


Specie  Payments. 


At  present,  friend  Jonathan,  you  have  nothing  but  your  customs 
to  depend  on  for  specie;  and  do  you  think  you  get  from  this 
source  all  the  revenue  you  should  have  from  it?  Far  from  it? 
What  with  the  smuggling  along  your  extensive  coast,  and  the 
fraudulent  ad  valorem  duty  invoices,  I doubt  if  you  get  a moiety 
of  it ; at  least  the  loss  is  very  much  greater  than  you  imagine. 
The  facilities  for  smuggling  were  exhibited  in  the  late  war,  when, 
with  a rigid  blockade,  your  southern  coast  was  repeatedly  pen- 
etrated. What,  think  you,  is  the  case,  now  that  your  whole 
coast  is  exposed,  as  always  has  been  the  case  in  time  of  peace? 
If,  then,  this  is  the  only  source  from  which  you  must  derive  your 
specie,  would  it  not  be  well  to  see  that  you  get  all  you  are  entitled 
to  from  it? — especially  when,  through  your  army  and  navy,  you 
could  do  so  without  much,  if  any,  additional  cost?  It  is  not 
alone  the  loss  of  millions  of  revenue,  but  a means  of  removing 
vast  sums  of  specie  not  enumerated  in  that  unhappy  balance  of 
trade,  which,  friend  Jonathan,  is  always  against  as. 

But,  friend  Jonathan,  even  with  the  present  amount  received 
from  customs — which  I believe  is  about  one  hundred  and  sixty 
millions  annually  — it  would  be  easy  to  pay  i he  interest  on  the 
funded  half  of  your  debt,  and  leave  a surplus  of  one  hundred 
and  six  millions;  this  added  to  the  specie  which  could  be  pur- 
chased with  the  gain  secured  fror$  the  annual  loss  of  currency, 
and  your  income  from  other  sources,  (public  lands,  etc.),  would, 
after  paying  the  necessary  expenses  of  carrying  on  the  gov  rn- 
ment,  leave  an  annual  surplus  of  over  one  hundred  mil  ions  of 
specie  on  hand ; so  that  in  three  years  you  would  have  a specie 
basis  of  one  dollar  to  four  on  twelve  hundred  millions  of  cur- 
rency— which  I believe  has  always  been  considered  an  ample 
and  sufficient  basis.  The  proposed  plan  of  paying  o'ne-half  your 
debt  in  currency,  besides  working  a great  convenience  to  \ ou, 
friend  Jonathan,  helps  your  people  to  a currency  of  a nature  the 
most  acceptable  to  them,  and  one  too,  which  must  always  remain 
so.  In  a country  like  yours,  currency  of  some  kind  must  always 
exist.  In  order,  therefore,  to  render  equal  justice  to  both  the 
the  creditor  and  debtor  classes,  it  should  be  of  the  same  nature 
as  weights  and  measures  — whose  tangible  representative  it 
really  is  — that  is,  it  should  never  vary  in  value,  and  least  of  all 
should  the  issuing  of  it  be  made  a money  making  business  for 


Specie  Payments. 


11 


companies  and  corporations ; this  at  once  creates  a speculative 
currency  — the  bane  of  all  honest  business. 

But,  friend  Jonathan,  all  speculations,  theories,  and  plans 
respecting  financial  matters  amount  to  nothing  in  the  end,  so 
long  as  each  year  bring  it  heavy  foreign  balances  against  you, 
half  of  which  your  custom  houses  are  strangers  to.  I care  not 
if  you  start  to-morrow  with  dollar  for  dollar  in  specie,  you  can 
not  continue  to  pay  it  for  any  length  of  time,  with  the  imports 
of  your  country  exceeding  its  exports.  It  certainly  is  not 
necessary  for  me  to  enter  into  an  argument  to  prove  this  posi- 
tion, or  the  other  fact,  that  the  balance  of  trade  is,  and  has  been, 
against  us.  I have  already  stated  that  your  production  of  pre- 
cious metals  exceeds  that  of  any  other  country  — in  fact  of  many 
countries  combined  — and  nothing  but  the  retention  of  it  is 
wanting  to  make  you  the  richest  nation,  in  this  regard,  on  earth. 
It  matters  not  how,  or  by  what  party,  this  is  accomplished  ; but 
accomplished  it  must  be  before  you  can  proclaim  yourself  an 
independent  nation.  This  thiug  is  likely  to  prove  worse  in  the 
future  than  it  has  in  the  past.  Already  the  cry  is,  “ No  market 
for  our  crops  in  Europe,”  and  the  disposition  to  import  is,  if 
anything,  increasing.  To  me  there  appears  to  be  a national  hal- 
lucination on  this  subject.  Neither  the  history  of  other  coun- 
tries, nor  the  present  condition  of  our  own,  seems  to  have  the 
least  influence  on  our  legislators;  they,  it  appears,  must  needs 
run  things  to  a crisis  though  the  devil  drives. 

Is  it  not  time,  then,  friend  Jonathan,  that  we  become  a little 
more  Americanized  — that  we  remember  there  is  such  a place  as 
the  United  States,  and  that  its  interests  are  not  always  the 
interests  of  Europe ; or  shall  we  continue  to  give  heed  to  the 
counsel  of  the  agents,  paid  and  otherwise,  of  Europe  ? 

What  say  you,  friend  Jonathan  ? Suppose  you  submit  it  to 
you  father,  Uncle  Samuel,  and  oblige  an 


Old  Citizen. 


v 


4 


